Summary
Williams Companies, Inc. (WMB) reported a significant consolidated net loss of $736.5 million, or $1.60 per share, for the fiscal year 2002. This represents a deterioration from the prior year's restated net loss of $477.7 million, or $0.95 per share. The company also experienced a loss from continuing operations of $483.3 million ($1.11 per share) in 2002, a substantial shift from the $802.7 million income ($1.61 per share) reported in 2001. A key point for investors is the "unaudited recurring loss from continuing operations" of approximately $84 million ($0.16 per share) for 2002, compared to substantial recurring earnings of $1.033 billion ($2.06 per share) in 2001, indicating a significant impact on core operational profitability. In addition to the financial results, WMB disclosed the sale of its ethanol business and indicated further potential asset sales in 2003. The company is also in advanced discussions for a joint venture or sale of a significant portion of its Energy Marketing & Trading portfolio and has reached an agreement in principle to sell a sizeable portion in the East. Furthermore, WMB is facing an investigation by the Federal Energy Regulatory Commission (FERC) concerning its Transcontinental Gas Pipe Corporation (Transco) subsidiary's compliance with rules governing the relationship between interstate natural gas pipelines and their marketing affiliates, with ongoing confidential discussions to resolve the matter.
Key Highlights
- 1Williams Companies reported a 2002 consolidated net loss of $736.5 million ($1.60 per share), a significant increase from the prior year's loss.
- 2Loss from continuing operations in 2002 was $483.3 million ($1.11 per share), contrasting with income from continuing operations in 2001.
- 3Unaudited recurring loss from continuing operations for 2002 was approximately $84 million ($0.16 per share), a sharp decline from $1.033 billion in recurring earnings in 2001.
- 4The company announced the sale of its ethanol business as part of its ongoing asset disposition strategy.
- 5Williams is in advanced discussions to sell or joint venture a significant portion of its Energy Marketing & Trading portfolio.
- 6An agreement in principle has been reached to sell a sizeable portion of the Energy Marketing & Trading portfolio in the East, expected to be announced soon.
- 7The Federal Energy Regulatory Commission (FERC) is investigating Transcontinental Gas Pipe Corporation (Transco) for potential non-compliance with affiliate relationship rules.